Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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As with most bonds, consider a bond with a face value
of $1,000. The bond's maturity is 5 years, the coupon
rate is 10% paid annually, and the market yield
(discount rate) is 14%.
What should be the estimated value of this bond in
one year? Assume the market yield remains
unchanged.
Enter your answer in terms of dollars and cents,
rounded to 2 decimals, and without the dollar sign.
That means, for example, that if your answer is
$127.5678, you must enter 127.57
X
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Transcribed Image Text:As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 5 years, the coupon rate is 10% paid annually, and the market yield (discount rate) is 14%. What should be the estimated value of this bond in one year? Assume the market yield remains unchanged. Enter your answer in terms of dollars and cents, rounded to 2 decimals, and without the dollar sign. That means, for example, that if your answer is $127.5678, you must enter 127.57 X
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